Even as UK crypto regulations make their way into the system, most banks in the country continue to block their customers from accessing even registered crypto exchanges.
The Financial Conduct Authority’s list of cryptoasset companies, which certifies that they comply with the country’s anti-money laundering and anti-terrorist financing regulations, now stands at 59, including exchanges such as Coinbase (COIN), Kraken and Gemini (GEMI).
Still, it is likely that clients who want to invest in these platforms will find themselves blocked by their banks. In a report published on Monday, lobby group UK Cryptoasset Business Council found that seven of the top 10 exchanges operating in the country perceived increased hostility from national banks over the past year. The remaining three said things remain unchanged.
Some 80% of exchanges reported an increase in the number of customers experiencing blocks or limits on bank transfers in 2025 and 70% described the banking environment as more hostile now than 12 months ago. The survey found that 40% of transactions were blocked or delayed.
“The debanking of the UK’s digital asset economy is a major obstacle to its growth,” the group wrote in the report. “…almost all major UK banks and payment services companies currently impose blanket transaction limits or complete blocks on cryptoasset exchanges. This trend is steadily worsening, with new restrictions being implemented…”
The FCA, which in the past was very restrictive when it comes to cryptocurrency firms, has shown greater openness and last week began consulting on new rules to be implemented in October 2027. The path to formal regulation of cryptocurrencies in the UK became clearer in late 2025 with Treasury legislation that expanded existing financial rules to cover the industry.
“If we are registered with the FCA, it shouldn’t be that difficult for UK companies,” one of the exchanges said. “That’s why we have given priority to other markets.”
One cryptocurrency exchange said it saw nearly $1.4 billion in rejected transactions in 2025 due to rejections by banks.
The banks are not moving. Among the country’s largest banks, HSBC (HSBA), Barclays (BARC), and NatWest (NWG) all impose limits on the amount customers can transfer to their crypto exchange accounts. Many others block any transfers completely, including Chase UK, Metro Bank, TSB and Starling Bank, which justify their stance by saying it is for the good of their customers in light of the high risk digital assets pose.
“Starling does not allow customers to buy or sell cryptocurrency via debit card, bank transfer in GBP, or bank transfer in other currencies,” a spokesperson told CoinDesk. “We have made this decision to help protect our customers.”
When asked if it agrees with cryptocurrency exchanges’ perception of a hostile environment, the bank responded by saying only: “we keep our policies under constant review and note that the regulation of cryptocurrency companies is currently under review by the FCA.”
A spokesperson for UK Finance, which represents more than 300 banks and financial services providers, told CoinDesk that the organization supports the FCA’s work to regulate cryptocurrencies, saying it supports stablecoins and cryptocurrency custody under strict rules.
“There is certainly no resistance to cryptocurrencies on our part,” the spokesperson said. However, individual banks “have a duty to protect their customers and make risk-based decisions about potential fraud, scams and threats of economic crime.”
Several crypto exchanges contacted by CoinDesk declined to comment, with one saying the caution reflects regulatory and legal reasons.
The FCA and Treasury declined to comment.
